Strategy 4: Manage your debtors

A sale isn’t a sale until the money is in the bank. A well managed debtors system is
critical for a successful business. Ensure your debtors system has preventative
measures as well as a step by step plan to recover overdue accounts.

Some examples of how to improve the debtors system:

§ Credit checks for all new customers.
§ Receiving deposits on signing of contract.
§ Discounts offered for early payment.

§ Make it as easy to pay as possible. Offer to take credit card details to move the

 

risk to the credit card company.

§ Send out invoices immediately.

§ Bank regularly.

§ Regularly review aged receivable report and consistently follow a step by step

 

plan to follow up overdue accounts.

 

§ If the customer cannot pay the whole amount, be flexible and arrange a

 

payment plan. Take the first payment straight away while on the phone by asking them to pay by credit card.